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Old And New Taxation Regime: Tax Slabs And Rates For AY 2021-22

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The new financial year has already begun and for the past financial year, the due date to file ITR for salaried class is July 31, unless otherwise extended due to coronavirus. Now as you would be beginning to compile all the required documents to hasten your return filing process. Here we are again stressing on the two income tax regime options available to every taxpayer along with the tax slab rates.

 

Old And New Taxation Regime: Tax Slabs And Rates For AY 2021-22

Old taxation regime: Here are the tax slab rates for individuals less than 60 years old:

Income rangeAssessment year 2021-22
Up to Rs. 250000
Rs. 250000 to Rs. 5 lakh5%
Rs. 5 lakh to Rs. 10 lakh20%
Above Rs. 10 lakh30%

For senior citizens

Income rangeAssessment year 2021-22
Up to Rs. 3,00,000
Rs. 300000 to Rs. 5 lakh5%
Rs. 5 lakh to Rs. 10 lakh20%
Above Rs. 10 lakh30%

For super senior citizens

Income rangeAssessment year 2021-22
Up to Rs. 5,00,000
Rs. 5 lakh to Rs. 10 lakh20%
Above Rs. 10 lakh30%

Now there is a surcharge implication in case the income of an assessee falls above the specified limit and the rates are as following:

For the assessment year 2021-22, surcharge rates are as following:

Income range Surcharge rate for AY 2021-22

Income rangeSurcharge rate for AY 2021-22
Rs. 50 lakhs - Rs. 1 crore10%
Rs. 1 crore to Rs. 2 crore15%
Rs. 2 crore to Rs. 5 crore25%
Rs. 5 crore to Rs. 10 crore37%
Exceeding Rs. 10 crore37%

Also, in the old tax regime with the above tax slabs there shall be allowed all deductions including Section 80C, section 80D etc. of the Income tax Act 1961

New tax regime:

Income tax slabRate
Up to Rs. 2.5 lakhNil
Rs. 2.5 lakh to Rs. 5 lakh5%
Rs. 5 lakh to Rs. 7.5 lakh10%
Rs. 7.5 lakh to Rs. 10 lakh15%
Rs. 10 lakh to Rs. 12.50 lakh20%
Rs. 12.5 lakh to Rs. 15 lakh25%
Above 15 Lakh30%

Now at the lower taxation rate in the new tax regime, one would have to forego the many deductions and exemptions available such as EPF, PPF, food coupon etc. Notably here the deduction i.e. available only is deduction under 80CCD (2) of the Income-tax Act, i.e., deduction on the employer's contribution to the Tier-I NPS account is available.

 

And here the maximum deduction that is allowed to be claimed is 10% of basic salary plus DA in a financial year.

GoodReturns.in

Read more about: income tax tax rate
Story first published: Saturday, April 24, 2021, 13:20 [IST]
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